EC Sales Form

student40

I have a sales invoice sent to Portugal, the customer only paid 50% of the invoice.
Do I have to show on the EC Form when I receive the full amount or can I write the 50% we have received and then the other 50% when we receive the it?

Thanks

Monsoon

I would have thought the figure on the ECSL should match the one on the VAT return, so it will depend whether you did the return on standard or cash accounting.

JodieR

I nearly answered this yesterday but then stopped as I wasn't 100% sure... I think that I agree with monsoon that it should agree with what's been declared on the VAT return, HOWEVER, (a) I think that the EU part of the VAT return should always be done on an accruals basis (I don't think you're allowed to use the cash basis for these transactions), and (b) EU lists will only align with your VAT return periods if your VAT returns end in March, June, Sept & Dec.

student40

Sorry maybe I did not finish my question correctly. We do our VAT return standard, and our next VAT is return is due at the end of Sept, so my question is if I post the complete invoice now but I only apply 50% of the received amount, I still have to record in the ECSL the complete amount as sales is that correct?
Thanks

JodieR

I would say that as the invoice is being posted now, the whole amount will need to go on the EC sales list for Jul,Aug, Sept. I'm 80% sure this is right, but it might be worth phoning the VAT helpline to double check.

JJH1969

Yes the whole amount of the invoice should go on the form - As Jodie says the EC sales list is prepared on an accruals basis. I was looking into this yesterday for a client who is flat rate and cash accounting.